Daily Outlook: GBP/USD Remains Neutral.

Intraday bias in GBP/USD remains neutral for the moment. Consolidation from 1.6343 is still in progress and another fall cannot be ruled out. But another rise remains in favor as long as 1.6030 support holds. Break of 1.6343 will target target 61.8% projection of 1.4230 to 1.6298 from 1.5343 at 1.6621 next.

However, decisive break of 1.6030 will argue that rise from 1.5343 is completed and deeper fall should then be seen towards 1.5343 key support level.

In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidation to long term down trend from 2007 high of 2.1161. Rise from 1.4230 is treated as the third leg of such consolidation and with 1.5343 support intact, such rise could still continue for 1.7043 resistance.

But after all, strong resistance should be seen between 1.7043 and 50% retracement of 2.1161 to 1.3503 at 1.7332 to limit upside. On the downside, break of 1.4230 support will be the first signal of down trend resumption and will turn focus to 1.3503 low for confirmation.

Daily Pivots: (S1) 1.6145; (P) 1.6193; (R1) 1.6250;


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